Transportation
Lufthansa Lowers Profit Goal on Weak Fares, Will Trim Costs
- Airline warns that breaking even at namesake unit is tough
- Asia among worst-hit regions affected by falling yields
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Deutsche Lufthansa AG cut its profit outlook for the full year and warned that breaking even at its namesake German unit will be “increasingly challenging” as it grapples with higher unit costs and falling ticket prices.
Adjusted operating profit will be in the range of €1.4 billion ($1.5 billion) to €1.8 billion, down from a previous guidance of about €2.2 billion, Lufthansa said in a statement on Friday. Adjusted cash flow will be significantly less than €1 billion, compared with a previous goal of at least €1 billion, the company said.